NetComm Wireless seeks $50m to boost global M2M ranking – UPDATED

NetComm Wireless (ASX: NTC) is looking to raise $50 million to fund its plans to be at the forefront of the global M2M and fixed wireless communications infrastructure markets.

It says nbn’s Ericsson-supplied fixed wireless network, for which it supplies the CPE, is the only demonstrable in-field solution of its kind globally and was instrumental in NetComm Wireless last year signing a fixed wireless master purchase agreement with “one of the two largest USA based telecommunications carriers.”

The company plans to leverage its first mover advantage in this market and says it is pursuing a number of very large potential global growth opportunities. It also wants to develop and accelerate a number of major projects that, it says, “will continue to position NetComm Wireless at the forefront of fixed wireless and M2M globally.”

Specifically, the company intends increase its complement of R&D engineers from 80 to more than 120, to “further develop NetComm Wireless’ software and new product solutions for existing and potential customers,” and to increase sales & marketing, customer relationship management and support staff from 60 to 74.

The Placement is jointly lead-managed and underwritten at a floor price of $2.93 by Goldman Sachs and Canaccord Genuity and represents a 9.9 percent discount on the closing price on 19 April.

NetComm Wireless plans to raise a further $10m by offering eligible shareholders to purchase additional shares that the placement price.

UPDATE: Netcomm announced on 21 April that it had successfully completed the $50m capital raising. “The placement was heavily oversubscribed and the placement shares were issued at $2.95. This represents a premium to the underwritten floor price and a 5.8 percent discount to the five-day volume weighted average share price,” the company said.